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“Curated subscription commerce: A theoretical conceptualizationâ€

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  • Bischof, Severin Friedrich
  • Boettger, Tim M.
  • Rudolph, Thomas

Abstract

Subscription commerce emerged as an up-and-coming phenomenon in retailing that enables shoppers to automatically receive recurring deliveries of consumer goods. One important dimension along which subscription services differ is the degree to which the content of each delivery is surprising. This paper focuses on two archetypes at opposite ends of this dimension, namely predefined and curated surprise subscriptions, and juxtaposes them to conceptualize surprise as a retail mechanism. It is hypothesized that curated surprise subscriptions carry an inherent risk to receive unappealing products, as consumers outsource the decision-making process to the subscription provider, which can influence consumers' choices and attitudes. Three studies explore the role of risk perception in consumers’ evaluation of consumer goods subscriptions. First, it was found that consumers prefer shorter delivery intervals for predefined subscriptions and longer delivery intervals for curated surprise subscriptions, in line with Prospect Theory. Second, empirical evidence for perceived risk as a mediating variable in this relation is provided. Finally, it is shown how retailers can manipulate associated risk through the introduction of a free-return option. The article is concluded by introducing a new typology of subscription services and discussing implications for managerial practice as well as avenues for future research.

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  • Bischof, Severin Friedrich & Boettger, Tim M. & Rudolph, Thomas, 2020. "“Curated subscription commerce: A theoretical conceptualizationâ€," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:joreco:v:54:y:2020:i:c:s0969698918302777
    DOI: 10.1016/j.jretconser.2019.04.019
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    1. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2021. "Amazon's New Supra-Omnichannel: Realizing Growing Seamless Switching for Apparel During COVID-19," Technology in Society, Elsevier, vol. 66(C).
    2. Toteva, Irina T. & Lutz, Richard J. & Shaw, Eric H., 2021. "The curious case of productivity orientation: The influence of advertising stimuli on affect and preference for subscription boxes," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    3. Bray, J. & De Silva Kanakaratne, M. & Dragouni, M. & Douglas, J., 2021. "Thinking inside the box: An empirical exploration of subscription retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Sinha, Rajesh Kumar, 2021. "Subscription and casual customers’ differential sensitivity to meteorological characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    5. Tan, Wee-Kheng & Chen, Bo-Hsiang, 2021. "Enhancing subscription-based ecommerce services through gambled price discounts," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    6. Andonova, Yana & Anaza, Nwamaka A. & Bennett, Delancy H.S., 2021. "Riding the subscription box wave: Understanding the landscape, challenges, and critical success factors of the subscription box industry," Business Horizons, Elsevier, vol. 64(5), pages 631-646.

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